§ Mr. Goodladasked the Secretary of State for Social Services if he will undertake to amend the law so that where an individual receives a payment in lieu of notice, that individual's future entitlement to unemployment benefits shall not be adversely affected.
§ Mrs. ChalkerIn the majority of cases where a contributor is disallowed unemployment benefit, and consequently credits, because he has received compensation for loss of employment by way of salary in lieu of notice, the resultant gap in his contribution record does not affect future entitlement to benefit because contributions paid or credited in the remainder of the tax year are sufficient for this purpose.
In a few cases the absence of contributions or credits in these circumstances does adversely affect entitlement and, as I said in my letter to my hon. Friend, we are looking at the possibility of doing something to change this position. However, any change would mean introducing a new procedure which would require additional staff. The regulations would also have to be altered and would become even more complex. These issues will have to be weighed carefully, and my right hon. Friend cannot give any undertaking to amend the law at this stage.